Citi: Raises CGN POWER (01816) target price by 55% to HK$3.8, upgrades rating to "Buy"
Citi raises CGN POWER's net profit forecasts for 2026 to 2028 by 12% to 17%, with the main assumption being that its average market-based electricity price in Guangdong Province will rise 14% year-on-year in 2027 to RMB 372/MWh, while also factoring in higher unit costs of nuclear fuel.
Citi issued a research report stating that it has raised the target price for CGN POWER (01816) by 55% from HK$2.45 to HK$3.8, and upgraded the rating from "Sell" to "Buy," mainly because the company benefits from the electricity price increase in Guangdong Province in early 2027.
The bank raised CGN POWER's net profit forecasts for 2026 to 2028 by 12% to 17%, primarily assuming that its average market-based electricity price in Guangdong Province will rise 14% year-on-year in 2027 to RMB372/MWh, while also factoring in the increase in unit cost of nuclear fuel. The bank's net profit forecasts for the company for 2027 to 2028 are 2% above market consensus.
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